Episode 194: Residential Debt: A Diversified Income Stream to Write Home About

In this insightful episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Eric Atlas, Head of US Residential Debt at Man Group’s Global Private Markets (GPM) division, to discuss the compelling opportunities within residential private credit. Eric brings a wealth of knowledge about the nuances of this asset class, explaining why it is an attractive option for insurance companies seeking diversification and income generation.

The conversation explores the key benefits of residential debt, such as the attractive capital treatment, access to Federal Home Loan Bank financing, and the potential for higher yields compared to traditional agency-backed securities. Eric also delves into the current lending environment, the impact of rising interest rates, and the opportunities arising from the pullback in bank lending. He provides an overview of how Man Group partners with insurers to structure these investments in a way that minimizes the administrative burden while maximizing returns.

For those interested in understanding the unique characteristics of residential debt and how it can fit into an insurance company’s portfolio, this episode offers valuable insights and practical takeaways.